Initial reports that Apple‘s (NASDAQ: AAPL) latest batch of smartphones were witnessing weaker demand than last year’s models weighed on the stock recently. But it looks like those reports may not hold much water after all, as the company’s iPhone 16 lineup seems to be receiving a solid response from customers.
More importantly, a closer look at the potential sales prospects of the latest iPhone models indicates that Apple could witness a nice bump in sales going forward.
A big upgrade cycle could help Apple sell more iPhones
Counterpoint Research estimates that iPhone 16 models are witnessing robust demand in India, with sales reportedly jumping between 15% and 20% on the day the smartphones went on sale in that country. It is worth noting that Apple’s sales in India surged an impressive 35% in fiscal 2024 (which ended in March this year), and the strong start that the company’s latest devices are enjoying in that market suggests that the momentum is set to continue.
Meanwhile, T-Mobile CEO Mike Sievert also pointed out that the carrier is selling more iPhone 16 models this year as compared to last year. Though Sievert pointed out that the delayed rollout of Apple Intelligence could lead to a longer buying cycle, it is worth noting that the iPhone maker could eventually enjoy strong sales because of an aging installed base of iPhones.
Dan Ives of Wedbush Securities estimates that out of an installed base of 1.5 billion iPhones, 300 million have not been upgraded in four years. So, with generative artificial intelligence (AI) features set to make their way to the latest Apple iPhones, there is a good chance that a significant chunk of these older iPhones could be upgraded. Given that Apple sold just under 235 million iPhones last year, the stage seems set for a big jump in the company’s shipments going forward.
That’s why investors may want to buy shares of Apple, considering that the tech giant’s growth is set to improve thanks to the arrival of its AI-enabled smartphones. However, there is another stock that’s set to benefit big time from the iPhone 16’s potential…
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